Find out if solar panels are right for your home in North Carolina.
North Carolina ranks as the 4th largest state for solar energy production in the United States. The state boasts an impressive array of both large-scale solar farms and smaller residential and commercial installations. The 80 MW Connote II Solar LLC, and the 64 MW Warsaw Solar Facility, stand as testaments to the scalability and efficiency of solar power. While promises of reduced electricity costs, tax incentives, and sustainable living drive an increasing number of residential and commercial buildings to install solar systems.
While solar power and other renewable energy options are booming in popularity, there is much to consider. Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.
The average price for a home solar panel system in North Carolina is $15,780 for a 6 kW system or about $2.63 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| North Carolina | $15,780 | $26,300 | $7,890 | $2.63 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For many, the optimal solar system size strikes a balance between cost and capacity. The objective is to produce sufficient electricity to meet your home's needs while minimizing expenses.
In other words, achieve the maximum value for your investment.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $13,150 | $8,785 |
| 6 kW | $15,780 | $10,542 |
| 7 kW | $18,410 | $12,299 |
| 8 kW | $21,040 | $14,056 |
| 10 kW | $26,300 | $17,570 |
Regrettably, nothing is flawless, and that includes solar. Before committing, it's crucial to consider the advantages and disadvantages of installing solar equipment on your property. Weighing these factors will help determine if it's the right choice for you. Everyone perceives and evaluates these aspects differently.
Our aim is to outline the prevalent advantages and disadvantages, allowing you to make an informed decision.
North Carolina has an ideal climate for solar panels. Plenty of sunlight during peak energy usage seasons. But, electricity costs in North Carolina are comparable to the US average, so a solar system delivering savings more heavily depends on other factors, energy use, location, size, cost, etc.
Most homes will realize a slightly more expensive investment over 25 years versus buying electricity traditionally. However, if you prioritize energy independence and renewable energy, a near-breakeven scenario might be perfect for your situation.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in North Carolina. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
In addition to the 30% Federal Solar Tax Credit, you may be eligible for solar incentives that could significantly reduce the cost of solar panel installation. Some incentives are statewide and others are more local. Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.
This table shows the available incentives in North Carolina. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Renewable Energy Equipment Manufacturer Incentive | NC | Financial Incentive | Industry Recruitment/Support |
| Active Solar Heating and Cooling Systems Exemption | NC | Financial Incentive | Property Tax Incentive |
| NC GreenPower Production Incentive | NC | Financial Incentive | Performance-Based Incentive |
| Interconnection Standards | NC | Regulatory Policy | Interconnection |
| Town of Chapel Hill - Energy Conservation Requirements for Town Buildings | NC | Regulatory Policy | Energy Standards for Public Buildings |
| Renewable Energy Tax Credit (Corporate) | NC | Financial Incentive | Corporate Tax Credit |
| Renewable Energy Tax Credit (Personal) | NC | Financial Incentive | Personal Tax Credit |
| Energy Improvement Loan Program (EILP) | NC | Financial Incentive | Loan Program |
| TVA - Green Power Providers | NC | Financial Incentive | Performance-Based Incentive |
| Town of Chapel Hill - Land-Use Management Ordinances | NC | Regulatory Policy | Solar/Wind Access Policy |
There are hundreds of solar companies in North Carolina. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
While solar is a trending topic, it doesn't necessarily suit everyone's needs or circumstances. Committing to solar is both significant and costly. While there are undeniable financial and environmental rewards, they can be overshadowed if challenges arise. Beyond a 20-year cost analysis for your residence, consider these additional factors when pondering your choices regarding the installer, system design, and financing:
On March 23, 2023, the North Carolina Utilities Commission approved new net metering changes that will lower solar savings for Duke Energy customers. These changes are expected to reduce the savings for solar customers as much as 20% and are scheduled to begin October 1, 2023.
A solar installer or energy engineer can assist you with determining what you expected rate and savings with be for your specific situation.
For the purposes of this article here are a few main points you should know about this change:
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in North Carolina decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in North Carolina can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. North Carolina’s average solar cost is $18,240 for a 6 kW system which is $3.04, slightly less than the nations average.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.
Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.
Also, many states require certain permits in order to install the panels to ensure safety. Including a construction permit and an electrical permit. Check out the permit websites for your city before taking on this endeavor.
There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
Solar Permit Process Residential
Solar Permit Process Commercial
